TEC, the department of telecom's standards agency, had suggested norms that went well beyond those recommended by the Telecom Regulatory Authority of India, making it significantly more difficult for operators to get additional spectrum.
A press release from the department of telecom stated that a committee would be constituted to revise the spectrum allocation criterion for existing operators "in a scientific and practicable manner."
The committee will comprise external experts and representation from the Cellular Operators Association of India (COAI) and Association of Unified Service Providers of India, respectively the lobbies for GSM- and CDMA-technology service providers.
The committee is to submit its report within three weeks from today. The review is being seen as the first move towards a settlement to the impasse that has seen GSM operators go to court against the department of telecom.
A lower subscriber threshold will mean that existing operators like Bharti Airtel and Vodafone among others stand to get additional spectrum earlier than expected.
For instance, while the telecom regulator had recommended enhancing the subscriber number for additional spectrum allocation in Mumbai to 2 million for the 10 MHz band, TEC upped it to 5.8 million.
The development comes even as COAI is preparing to approach the telecom tribunal on Wednesday to broaden the ambit of its legal challenge. The COAI petition is currently confined to challenging the policy for dual use spectrum to rival CDMA operators.
Sources said COAI is scheduled to file affidavits against the TEC recommendations and the recent allocation of additional spectrum to state-owned operators Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd, which had achieved the required subscriber threshold.
The Telecom Tangle
28 August: The telecom regulator gives its recommendations on review of licence terms and conditions for telecom service providers, reiterates no cap on number of operators
24 September: Department of Telecom sets October 1 cut-off date for new applications for mobile licences
1 October: Receives 575 applications from 46 companies
15-19 October: DoT approves dual-technology use norms - allowing operators to sell CDMA and GSM services in the same circle. The department also approves the recommendation of the enhanced subscriber linked criterion for spectrum allocation. Reliance Communications, the largest CDMA service provider, deposits licence fee Rs 1651 crore (Rs 16.51 billion) to launch GSM services
23 October: COAI, the GSM operators' lobby, approaches telecom tribunal against the government's decision, alleges favouritism in decision making in allowing Reliance Communications dual-use technology under the same licence
24 October: Telecom tribunal hears petition, sets November 12 as next date of hearing
26 October: Telecom Engineering Centre gives report on telecom regulator's recommendations, significantly enhances minimum subscriber norms for service providers to qualify for spectrum allocation. Government accepts report
2 November: Two operators - Maxis (Aircel) and Spice Communications - withdraw from the COAI case.
6 November: Spice Telecom announces that it withdrew from the case on October 31
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